Wall Street’s Top Billionaires Are Changing Their Mind About Apple (AAPL)

We just covered the Top 10 Stock Picks of 10 Famous Billionaires. Apple Inc. (NASDAQ:AAPL) ranks #4 (see Top 5 Stock Picks of 5 Famous Billionaires). Number of Hedge Funds: 170 Top Pick Of: Warren Buffett’s Berkshire Hathaway Apple was once seen as a laggard in the AI race. Now it is looking like a winner, and without breaking the bank on capex. Apple’s capex-to-revenue ratio stands at just 2.5%, well below the 10%-plus seen at most mega-cap peers. As competitors burn through cash on AI infrastructure and investors question whether those investments will generate returns, Apple is taking a different path. The company plans to monetize AI through its massive existing customer base. Apple now has over 2.5 billion active devices, up from 2.35 billion a year ago, a gain of 150 million devices in one year. That installed base positions Apple to benefit from the shift toward agentic AI applications, where users need a trusted platform to manage identity, authentication, and payments. Few platforms can match Apple on that front. The stock is not cheap. It trades at over 35x forward non-GAAP P/E, the highest in the Mag 7 except Tesla. That is roughly 30% above Microsoft and nearly double Meta. Its forward PEG ratio stands at 3.1x, compared to 0.57x for Nvidia and 0.90x for Meta. Risks remain. Siri still has limitations in intent understanding and AI integration. Devices may also need stronger compute capabilities, including better memory, bandwidth, and neural processing power, before Apple can fully deliver on the AI endpoint opportunity. RiverPark Large Growth Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its fourth quarter 2025 investor letter: “Apple Inc. (NASDAQ:AAPL): AAPL shares rose in 4Q25 following better-than-feared iPhone 17 sell-through trends and stronger Services momentum. The company reported that early adoption of its on-device AI features exceeded internal expectations, particularly in North America and Europe, where attach rates for Pro models remained elevated. Wearables also returned to.....(Click Here to Read the Letter in Detail).” While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.